Well one thing: where is the AOLserver log file? svc isn't going to have a log file, unless you set one up, and you need to run AOLserver with -ft to get that to work. An error need to show up somewhere. Even if the -b switch was incorrect AOLserver would still start up just fine, it just wouldn't listen.
Another thing: use -k to kill AOLserver unless you know -t works. If you want it to stop, do a -k and then a -d. You can also test by starting with a -o (once). Either the AOLserver error log or readproctitle will have an error for a restart, unless you have discovered a bug in nsmain. Don't know what would happen then.
I would report it to the AOLserver list, maybe someone else has seen similar behavior.
One more thing: if you are using a high port, why not login as nsadmin and start it up without sudo (./run, and maybe with -ft). Just hoping to expose an error somehow.